Antrak Air, a domestic airline in the country, has hinted at folding up if the Ghana Airport Company (GAC) continues licensing more domestic airlines to operate in the country.
According to them, even with the current number of airlines, they are still struggling for passengers leading to ‘low unrealistic fares’.
It is in this view they have suggested that if conditions in the industry get worse instead of improving, they would have to “look elsewhere to be able to maximize investment”.
Speaking in an interview on Citi Eye witness news, Chief Operating Officer of Antrak, Kwaku Antwi-Boasiako said: “if you offer one way ticket from Accra to Kumasi for 50 cedis and 100 cedis, Accra-Tamale, you can get a lot of people to fly because it is cheap but it doesn't mean you are covering your cost. Yes the industry has grown over the last few years; no doubt about that but it is on the back of low unrealistic fares that cannot be sustained over the long period...however a decision has not yet been made to stop operations”.
He said the aviation industry is still growing and hasn't reached the level where GAC can license as many airlines as possible to operate.
“Currently there are four airlines operating and most of them are complaining...more airlines chasing fewer passengers and as a result everybody has to cut down to ridiculously low fares to attract passengers”.
Answering to whether they are thinking of folding up because they can’t match up to the competition in the industry, Mr Boasiako said Antrak Air is the largest domestic operator in the country; “we carry over 40% of the market and so we are not afraid of competition at all. We are the dominant player...it is not a question of Antrak not being able to compete...government should have a cut to licensing more aviation companies seeking to enter the Ghanaian market”.
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